St Vincent and the Grenadines’ Prime Minister, Dr Godwin Friday, delivered a powerful call for regional solidarity and urgent financial reform, while urging the Caribbean Development Bank (CDB) and international partners to accelerate funding to combat severe climate shocks and crushing national debt.
Speaking in Nassau on behalf of the CDB’s borrowing member countries, Dr Friday addressed a high-level delegation including Bahamas Prime Minister Philip Davis, CDB President Daniel Best, and regional governors.
Under the conference theme, Forging the Caribbean’s Future: Strategic Solutions for Uncertain Times, Dr Friday explained that the region was navigating “fast-moving, shifting global geopolitical currents” where “old alliances are strained” and “long accepted conventions are being questioned with no reassuring answers.”
Dr Friday highlighted the severe economic stranglehold confronting the region, revealing that central government debt remained chronically high across the Caribbean. He noted that debt-to-GDP ratios exceed the prudential 60 per cent target in nine member countries, and critically, “in my own country exceeding 113 per cent.”
He warned that this “high debt burden severely limits borrowing countries’ abilities to fund necessary investments to accelerate economic growth and protect the most vulnerable of our citizens” from escalating fuel prices, rising shipping costs, and a tightening international aid environment.
The prime minister drew sharp attention to the staggering funding mismatch facing the region regarding climate resilience, noting that while Caribbean nations require an estimated $14 billion annually for a comprehensive climate response, the region currently mobilizes less than ten per cent of that amount.
”It is therefore imperative that our development partners become more adaptive, more responsive, and willing to provide highly concessional financing and dedicated resources for loss and damage that will not worsen a bad debt situation,” Dr Friday stated.
Despite these systemic hurdles, Dr Friday praised the CDB as “an indispensable partner in the project of regional economic transformation,” pointing to visible successes within St Vincent and the Grenadines where capital had fortified local infrastructure.
”The modern port in Kingstown, the school improvement projects, the road management and rural road programs all serve to fortify our country in the face of shocks,” he said.
He added that when targeted CDB capital is merged with local knowledge, “it has the power to transform lives, elevate communities, and build climate resilient economic assets.”
Looking forward, Dr Friday outlined a comprehensive resilience framework spanning environmental, economic, and social dimensions to guide the bank’s priorities. He reminded the delegation that the Caribbean has entered the 2026 hurricane season “still nursing severe wounds inflicted by Hurricane Beryl in 2024 and Melissa in 2025.”
To safeguard the region’s future, he championed aggressive economic diversification, urging states to pursue modern frontiers, including digitalising public services, exploiting renewable energy like the geothermal projects in Dominica and St Kitts and Nevis, and promoting value-added agro-processing to enhance domestic food security.
To achieve this ambitious agenda, Dr Friday endorsed a swift institutional reform for the CDB, demanding an end to the region’s implementation deficit.
“We must move swiftly to implement the transformative reforms to eliminate friction and drive our institution forward,” Dr Friday maintained.
He made a direct appeal to all CDB shareholders and non-regional partners to fully support the CDB’s strategic direction and robustly back the Special Development Fund (SDF 11), which remains “the lifeblood of concessional financing for the region’s vulnerable members.”
Dr Friday urged leaders to let their choices “foster a stable, inclusive, and thriving Caribbean that is sustainable for generations to come.”
(RR)
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